Market Making

A market maker is an exchange member (investment intermediary or bank) who has committed to providing minimum liquidity by maintaining quotes for certain issues of financial instruments admitted to trading on the Exchange, excluding rights issues.

The activity as a market maker is carried out based on a written agreement with the Exchange. Market makers are obliged to provide liquidity for the issues for which they are registered as such, under the following main conditions:

• to maintain 'bid' and 'ask' quotes with a maximum spread size of 5% for stock issues and exchange-traded products and 1% for bond issues admitted to trading on the Main market of BSE
• to maintain quotes comparable in size;
• to maintain quotes for at least half of the trading days for each calendar month and at least 50 (fifty) percent of the time of continuous trading time;

Additional increased requirements:

1. to maintain quotes for 90 (ninety) percent of the time from the beginning of the opening auction to the end of the closing auction and during interruptions due to instability;
2. to participate in auctions, including during interruptions due to instability, by entering quotes within 90 (ninety) seconds from the start of the order entry phase, maintaining the quote throughout the price determination phase, and being able to change both the 'bid' and 'ask' prices as well as their volume;
3. to enter a quote with a minimum monetary value at the time of entry of BGN 2,500 (two thousand five hundred) for financial instruments on the Main market of BSE or 5,000 EUR (five thousand) for financial instruments registered on the "BSE International" market;
4. to enter a new quote within 5 (five) minutes of the withdrawal of the previous one, respectively of its complete execution;